Question : In the context of capital markets, the abbreviation "FPO" stands for:
Option 1: Free Public Offer
Option 2: First Portfolio Operation
Option 3: Follow-on Public Offer
Option 4: First Public Offer
Correct Answer: Follow-on Public Offer
Solution : The correct answer is Follow-on Public Offer .
Follow-on Public Offer (FPO) is a process by which a company which is already listed on an exchange issues new shares to the shareholders, usually the promoters. FPO is used by companies to diversify their equity base.
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